John Husing, Ph.D. Economics & Politics, Inc. Chief Economist, IEEP Inland Empire Economic Growth... Building An Expansion

After Losing 8.71 Million Jobs … U.S. Jobs All The Way Back & More

Value of the Dollar Will Spur Imports

Interest Rates Remain Benign Fed Likely To Make Two.0025 Move: September & December

U.S. & CA Unemployment History Great Recession 5.5% 6.4%

California Job Gains/Losses ,066,400 Great Recession e +1,942, Up +879,733 Recovery

Where is the IE in its Job History? , ,807 Change +49,873

Inland Empire Growth was the 2 nd Largest Absolute Job Gain in California in 2014!

Inland Empire Unemployment Down

Primary Tier Secondary Tier Economic Development … Increase The Economic Base! How Regional Economies Work

Logistics Flow of Goods

Value of the Dollar Will Spur Imports

Strong Industrial Space Absorption 17,110,027 SF

Industrial Vacancy Rate 4.1%

Industrial Construction

Port Container Volumes -15.0% -2.3%

Fulfillment Centers

E-Commerce Growth Rates Year Over Year by Quarter

Manufacturing: Should Be A Major Growth Source

California Manufacturing Job Growth Just 3.5% of U.S. Growth

Regulatory Instability Destroying CA Blue Collar Sectors

Nestle to close Valley food Plant 360 California jobs will be lost as Hot Pockets production goes to Kentucky “In higher skilled industries they are hesitant to move because the labor force is not available anywhere. But lower- skilled one, they have an easier time leaving. That trend in California has the potential to leave lower-educated workers behind. BUSINESS Thursday, August 7, 2014 LATIMES.COM/BUSINESS ::

d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) All RespondentsLarge BanksOther Banks BanksPercentBanksPercentBanksPercent Tightened considerably Tightened somewhat Remained basically unchanged Eased somewhat Eased considerably Total Commercial Industrial Loans Under $50 Million

Blue Collar Job Growth! Median Pay $51,923 Median Pay $49,391 Median Pay $43,911

Clash Reducing Poverty in a Marginally Educated Area Next Iteration in Clean Air

Marginally Educated Share of Adults

Poverty

Causes of Public Health Difficulties 1.Socio-Economics 40% 2.Population’s Health Behaviors30% 3.Access to Medical Care20% 4.Environmental 10% Source: Different Perspectives For Assigning Weights To Determinants of Health, University of Wisconsin, Public Health Institute, %

PM 2.5: Diesel Pollution

EPA-CARB-AQMD Standards Eliminating Ability of Blue Collar Sectors to Grow: Manufacturing (Not Growing) Logistics (Prime New Target) Construction (NIMBY’s Love CEQA) Blue Collar Sector Growth Needed To Allow Marginally Educated To Access the Middle Class Poverty is Exacerbated as a Result!

Health Effects of 2007 Compliant Diesel Truck Engines

HEI Releases Final Report CARB & EPA Appear To Be Ignoring Results of a Study They Helped Fund. AQMD Denies It Affects Their Positions …

Strategy 1.Congress & Legislature To Look Into Why EPA & CARB Have Basically Hidden The Health Effects Study 2.Look To Democrats In Low Income Districts To Work To Change Their Party’s Direction In CA Legislature 3.AB 1286

Office Market

Office Absorption Follows Higher-End Workers & Residential Construction Activity High-End Jobs Follow Workers into the Area

Higher End Homes $585,199 $427,095 $484,914 UPLAND EASTVALE $468,269 $465,778 $459,000 CORONA $429,667 TEMECULA $344,095$393,603 $568,700 Claremont

Migration of Educated Workers

Construction Finally Starting To Come Back!

Office Vacancy Rates Improving But Still High 15.3% 24.0%

High-End Job Growth Median Pay $55,308 Median Pay $65,904

Review 2015 Better Than 2014 Logistics Strong Manufacturing Modest Construction Returning Health Care Set To Take-Off Office Sectors Modest Return Unemployment Down to 6.4% Growth Strong 49,800 Jobs Above Pre-Recession